Cash Keeps Facebook's Status Private

By

Anupreeta Das And

Amir Efrati

Updated Jan. 4, 2011 12:01 a.m. ET

Facebook Inc. struck a deal with Goldman Sachs Group Inc. and others to raise $500 million, said people familiar with the matter, becoming the latest Internet company to build a war chest that will allow it to stay private longer.

The agreement, which includes funding from Digital Sky Technologies, a Russian Internet investment firm, values Facebook at $50 billion, said the people familiar with the matter. That's up from $10 billion...